Buy-Sell Volume Pressure and Convergence-Divergence Oscillator

Summary

This indicator estimates buying and selling pressure from each bar’s price range and volume. A bull-bear balance calculation allocates volume between the two sides, then smoothed averages produce pressure series. The indicator compares buying pressure with selling pressure in a convergence-divergence oscillator modeled on familiar percentage or MACD-style comparisons. Positive readings are described as bullish dominance and negative readings as bearish dominance; a histogram tracks the difference between raw and normalized pressure measures.

The presentation can show pressure bars, the oscillator, cumulative convergence-divergence, or normalized and filtered data. The description says normalization is intended to reduce day-to-day noise, including noise associated with high-frequency trading, and suggests the histogram can serve as confirmation. These are interpretive claims, not reported test results. The document supplies formulas and fixed parameter values in its code, but no market-specific evaluation, entry and exit rules, or evidence that the signals predict returns.

Key ideas

• The method allocates each bar’s volume between buying and selling pressure using price-range relationships.
• Smoothed pressure averages feed a convergence-divergence oscillator, with positive and negative readings interpreted as bullish and bearish dominance.
• The indicator offers raw, cumulative, and normalized presentations of pressure data.
• A histogram compares raw and normalized oscillator readings and is presented as a possible confirmation aid.
• The document provides no performance testing or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.